management planning and controlWord格式文档下载.docx

1、5 Motivational contracts （performance evaluation and rewards）;6 Controlling special settings （international operations and interorganisational collaboration ventures）.1. Reasons for MCS“Expectation gap” occurs when what is desired to achieve is different from what is likely to achieve. Employees are

2、 sometimes unable or unwilling to act in the organizations best interest. This may be caused by three typical control problems: lack of direction, lack of motivation and personal limitations. In reducing the expectation gap problems, managers must take steps to guard against the undesirable behaviou

3、rs and to encourage desirable behaviours.lack of directionWhen employee dont know what the organization wants from them Communication +ReinforcementMCS can inform employees as to how they can maximize their contribution to the fulfilment of organizational objectives.Lack of motivationWhen employee c

4、hoose not to perform as their organization would have them perform 1 Lack of goal congruence: individual and organizational objective do not coincide, and individuals are self-interested2 employees sometimes act in their own personal interest at the expense of their organizational objectives 3 Emplo

5、yees, particularly managers are prone to making decisions that serve their interest, but not those of their organization.4 Employee fraud and theft5 Personal limitationEmployees are not able to do a good job because of certain personal limitation they have 1 Lack of requisite knowledge, intelligence

6、, training ,experience or stamina2 Employee are promoted above their level of competence3 Some job are not designed properlyTrainingjob assignment/promotion job designManagement control includes all the devices or systems use to ensure that the behaviours and decisions of their employees are consist

7、ent with the organizations objectives and strategies. MCS is a set of control procedures or is a collection of controls. MCS can help reducing the gap. It can increase the probability that the organizations objectives will be achieved. To have a high probability of success, organizations must mainta

8、in good management control. In achieving this, there are several issues must be concern as following: proper communications of organizational goals; proper inventory control; control should be future oriented and objective driven, the control benefit should exceed control costs （try to minimize the

9、cost of control system to get maximum benefits）.Organizations can never avoid all their control problems, but they can limit them or reduce the potential loss caused by the problems. There are four prominent avoidance strategies, including activity elimination, automation, centralization, and risk s

10、haring. Activity elimination: turning over the potential risk driven by particular entity or activity, and the associated profits to third party through subcontract, licensing agreement, or divestment. Automation: computers eliminate the human problems of inaccuracy, in consistency, and lack of moti

11、vation. Centralization: all key decisions are made at top management levels Risk sharing: sharing risks with outside parties can limit the losses that could be incurred by inappropriate employees behaviours. i.e. insurance, joint venture agreement.The processes of designing and improving MCSs requir

12、e the addressing of two basic questions: what is desired and what is likely to happen?MCS cannot be designed or evaluated without an understanding of the demands of the roles being controlled. Objectives, and most importantly, strategies derived from a good understanding of the organizations objecti

13、ves often provide important guides to the actions that are expected.1 Choice of controlsThe choice of management control system is the first of two decisions leading to setting up of MCS. It is not random. The choices are based on a number of factors, particularly the task to be controlled. Manageme

14、nt control is a critical function in organizations. MCSs vary considerably among companies and among the areas of any single company. Every organisation is unique and therefore there is no universal set of controls applicable to all organisations. In choosing proper controls for a certain company, t

15、he three control problems should be addressed.There are three types of controls based on the object of controls, including action control, result control and personnel/ cultural control. As a rule of thumb, it starts with personnel/cultural control, and then chooses from results and action control.

16、Usually one type only is not feasible, multiple controls can be used. The different types of management controls are not equally effective in all circumstances. Therefore, it is important to focus on seeking for net control benefits. It should be mentioned that inappropriate management control can l

17、ead to large losses and possibly even to organizational failure.（ i.e. management control in common use cause managers to be excessively short-term oriented or are prone to stifle creativity and initiative）Action controlAction controls are the most direct form of management control. They involve tak

18、ing steps to ensure that employees act in the organizations best interest by making their actions themselves the focus of control. They take any of four basic forms: behaviours constraints, peraction reviews, action accountability, and redundancy.Action controls can also be classified according to w

19、hether they serve to prevent or to detect undesirable behaviours. Most action controls are aimed at preventing undesirable behaviours, except action-accountability controls.They are usable and effective only when managers know that actions are desirable （or undesirable） and have the ability to ensur

20、e that the desirable actions occur （or that the undesirable actions do not occur）.The advantages of action controls are as following:They are the most direct form of control, this consequently provide the best control. and if control over the actions themselves are judged to be adequate, there is no

21、 need t monitor results. They also act as a form of organizational memory, so that the knowledge is not lost. They particularly in the form of policies and procedures are also an efficient way to aid organizational coordination.The disadvantages of action controls are as following:They have severe f

22、easibility limitation for excellent knowledge of what actions are desirable exists only for highly routinized jobs. Most action control discourages creativity, innovation and adaptation. Action accountability can cause sloppiness. Action accountability often causes negative attitudes. It often leads

23、 to behavioural displacement. Preaction reviews are costly. And most companies have difficulty in modifying their procedures as situations change, and communicating changes that are made an be expensive.Behavioural constraintsmotivational problemsPhysically:computer passwords, limits on access to ar

24、eas administratively:the restriction of decision-making authorityseparation of dutiesPreaction reviewsAll threeScrutiny of the action plans of the employees being controlled.Expenditure approvals, budget reviewAction accountabilityAll three Holding employees accountable for the actions they take. Ca

25、n be either prevention or detectionWork rules, policies and procedures, contract provisions and codes of conduct.Nurses use preoperative checklist for preparing surgery. RedundancyMotivational problems & personal limitationAssigning more employees or machines to a task than is strictly necessary.Cos

26、tly, result in conflict, frustration and boredomComputer facilities, security functions and critical operations.Result control:Result controls are an indirect form of control. They focus on the results produced by addressing motivation and lack of direction problems. Result controls are preventive-t

27、ype controls. They involve rewarding employees for generating good results, or punishing them for poor results.（ i.e. pay-for-performance） The rewards linked to results go far beyond monetary compensation and include, among others, job security, promotions, autonomy, and recognition. Well-defined re

28、sults also inform employees what is expected of them and encourage them to do what they can to produce the desired results. Result controls can influence actions of employees because concerned about the consequences of their actions. Although result control can not directly address personal limitati

29、ons, they are a good indicator. Result controls also create meritocracies.Result controls can provide effective control even where knowledge as to what actions are desirable is lacking. Result controls can yield good control while allowing the employees whose behaviours are being controlled high aut

30、onomy. High autonomy often generates innovation. The organization does not dictate employees what actions they should take; instead employees are empowered to take those actions they believe will best produce the desired results. Result controls also encourage the employees to discover and develop t

31、heir talent and get placed in jobs in which thy will be able to perform well. Result controls are often inexpensive. If organizations can tailor their reward package to their managers individual preference they can provide meaningful rewards at the lowest possible costs.Result controls, however, have some major limitations as following, they failed to meet one or more of the qualities of good measur